Standard life reports 10 per cent rise in profts

Standard Life has posted strong first-half results with pre-tax operating profits up 10 per cent to £182m.

Net inflows across the group were up by a record 71 per cent to £5.3bn.

Overseas operations remain strong, particularly in India and China where net inflows across those regions rose by 47 per cent to £725 million. Sales in India grew nine per cent for the first half, though second quarter sales are up 35 per cent on the same point last year.

In China, sales volumes dropped by one per cent overall in the first-half though premiums rose 28 per cent, despite single premium business falling by 31 per cent.

Although net inflows in Canada fell to s92 million compared with s139million a year ago, margins across its investment products, which include group and individual segregated funds and mutual funds, have increased by 43 per cent to s344million from s241million a year ago, though earnings in Canada fell by 16 percent to s62 million.

Assets under management also grew in the first half, up five per cent to £179bn.

However money continues to flow out of Standard Life legacy products though the rate has slowed from s1.1bn posted in the first-half of 2009 to s404 million.

Profits before tax from the insurers UK operations also dropped by five five per cent to s76 million.

Chief Executive David Nish said: "This strong set of results demonstrates the progress we have made as a business and the potential for increased profits and dividends as we invest for growth.

"We operate in markets which have exciting growth opportunities for Standard Life. In particular, we are well positioned to help our customers meet the challenges of the savings gap in the UK.

"We continue to lead in providing innovative propositions for individuals, employers and intermediaries in the UK."

On overseas operations, Nish added: "Our Canadian operations and Asian businesses, including the joint ventures, have also performed well.

" In particular there is strong momentum building in India and we see great potential in this very exciting market.

"The Group is more focused following the sale of our banking and health care operations."

Net income across the group rallied from a s20 million loss last year to s182 million gain for the first half to June 30, with net inflows to its long-term savings operations more than tripling to s2.45bn compared with s767 million a year ago.

UK corporate net inflows also rose by 64 per cent year-on-year, from s1.24bnin 2009 to s2.03bn.

Third-party assets under management also grew to record levels, up 52 per cent to s63bn.

Despite profits being up 10 per cent on the same point last year, up from s166 million last year to s182 million, the figure still fell short of analysts expectations of around s196 million.

But the company raised its first-half dividend to 4.35 pence a share beating analyst estimates of 4.3 pence a share.

Standard Life said it was in a strong position to capitalise on the UK pensions market as people shift from final salary and government-sponsored pension plans.

Scotland's largest life insurer also added hedge funds to its product range in May following its purchase of a majority holding in Aida Capital.